Did you know that acquiring new customers can cost seven times as much money as retaining the existing ones? That statistic shows the importance of customer retention. However, there are many other customer retention statistics that show your role in retaining your existing customers. These customer retention statistics show how businesses that aren’t tracking trends in customer retention marketing can start right away.
51% of Consumers in the United States Stick to Brands that Interact with them
Research by Accenture claims that approximately 51% of American consumers will be loyal to brands using their preferred communication channels. Retaining your loyal customers is all about using their preferred means to engage. Using different avenues to meet customers where they are will reduce the churn rate and improve retention strategies. For example, a call answering service can now use SMS marketing to interact with its target audience. Just this one feature can make a difference in their retention strategies. Any brand that hasn’t looked into the benefits of developing an SMS marketing program should consider doing it now. SMS marketing programs could help you reach millions of customers at a lower cost than other marketing platforms.
Millennials Switch to Other Retailers
74% of the younger generation won’t hesitate to switch brands if their current vendor isn’t meeting their expectations. Millennials have long been blamed for the downfall of industries. However, recent customer retention statistics show that it might be the case. According to a recent Business Wire report, they are likely to switch to another brand after experiencing poor customer service. Millennials are leading a revolution in customer retention while highlighting the importance of retaining loyal customers.
Of course, the foundation of any successful consumer retention strategy is to offer quality services. Business owners who are yet to focus their attention on training their workers on quality service delivery should take note. Millennial consumers are no longer willing to be mistreated. With the popularity of social media, brands that don’t focus on the quality of service could lose millions of loyal customers. As such, make customer service a priority and never risk it. That way, you will realize how useful it is in retaining your loyal consumers.
Keep off Vendors with a Negative Reputation
Customer experience is central to retaining your top and highly reliable customers. Recent studies by Zendesk found that 39% of customers will avoid a brand for several years after a negative experience. Business owners might think that this statistic isn’t significant, the percentage will most likely continue to rise instead of dropping. It’s time brands start work on customer retention and service to try to avoid losing clients for the long haul. Treating consumers well and meeting their expectations will make it cheap and quick to run a remarketing campaign to try to win them back. However, you may never be able to convince a customer that left your services or products due to bad experience to shop from you again.
Customers will Spend More for a Better Experience
A recent study on customer experience found that 86% of customers will spend up to 25% more for quality products and unmatched customer service. That means focusing on customer experience increases not only consumer retention but also improves your bottom line. After all, it isn’t a guarantee that customers will return the favor after answering their calls promptly or addressing their concerns. However, unmatched customer experience has a direct impact on your profitability.
Customer as the Key Brand Differentiator
According to the latest research on customer retention, customer experience might soon overtake price and product as the primary differentiator of brands. The statistic is by far the most critical one when planning for your next few years’ marketing. According to Walker, soon price and products will be overtaken by customer experience as the primary differentiator of brands. As such, including customer retention as part of your marketing plan will not only improve your bottom line but also give your brand a competitive edge over the competitors. Marketers don’t have to look too far to understand how these statistics are already shaping the market.
For example, Amazon has grown to become the world’s largest online trading platform by making consumer experience its champion. Brands such as Apple are using the same approach to rise above competitors. Any marketer should consider keeping up with these market trends; otherwise, their businesses might soon become obsolete.
According to a recent study, loyal customers are seven times more likely to try your new products or services, four times likely to refer your brand, five times likely to reconcile with your brand, and five times likely to buy back from you. It is one of the statistics that highlight the importance of retaining your loyal customers. The statistic also shows that customers are likely to continue working with brands that treated them well the first time they interacted with them. As more enterprises start to realize the importance of retaining their highly reliable customers, they will invest more money on customer retention programs than ever.
Each of these figures points towards focusing on retaining loyal customers and trying to reduce their turnover rate. They also show the importance of including customer engagement, service, and retention as part of your marketing strategy. With 43% of consumers sticking to a call answering service that they are loyal to, any small business answering service that doesn’t prioritize its clients could be losing out on a lot of opportunities.
The latest brand loyalty statistics highlight why every brand should invest in retaining its customers. Of course, any successful entrepreneur understands that keeping customers isn’t an easy task. Understanding how to make customers loyal can be central to the success of your brand. It is critical to know the fastest ways they can lose the trust of their loyal customers and avoid common mistakes that make it hard for them to retain their customers.
The Importance of Customer Satisfaction
Customer retention or churn is related to customer satisfaction for many reasons. Unhappy and dissatisfied customers are likely to turn elsewhere, and the chances are high that they will spread negative reviews about your brand. As such, brands have begun to realize how much customer satisfaction impacts their reputation and revenue, and they have now shifted their focus to transforming the experience of their consumers.
A recent study on companies found that 45% of brands cite experience management as their top priority. It also found that top brands are more likely to have a better customer experience that facilitates a seamless transaction and open communication compared to their peers. Customer experience has become a competitive advantage that influences repeat purchases and drives new sales.